|
Author: Mike Fitzpatrick Article source: http://www.financial-watch.com/. Used with author's permission.
For the first time in several years the U.S. dollar has managed to gain value against the world's other major currencies. During the first three months of 2005, the U.S. dollar is up approximately five percent against both the yen and the euro. The gains for the dollar should be considered significant when considering the United States still faces a growing trade imbalance. So far this year, currency traders have shifted their focus from the United States' large trade and current account shortfalls toward the higher rates of returns being offered on U.S. debt. The recent strength shown in the dollar has somewhat shifted sentiment within the financial markets about the future direction of the currency. A Bloomberg survey released earlier this week shows that the major currency traders expect to see dollar weakness resume later in the year, but the sentiment among dollar bears is much weaker than it was at the start of the year.
The strength shown in the U.S. currency thus far in 2005 should prove to be short-lived. The strong Gross Domestic Product (GDP) growth during the past eighteen months will begin to show signs of moving closer to more normal levels over the next couple months. The signs of a slower economic growth will likely cause a shift in sentiment among currency traders toward the more fundamental problems facing the U.S. economy. The United States trade and current account deficits show no signs of retreating anytime soon. In fact, we expect the coming trade figures to show further deterioration in the balance of trade over the next few months. The major industrialized nations outside of the United States continue to experience anemic economic growth. This continues to place further pressure on the U.S. dollar as the United States consumer continues to buy goods produced in Europe, Japan, and China.
While we expect the dollar to resume its gradual fall against most major currencies, the major wildcard in our forecast is of course China. Recent information coming from China's top decision makers indicates the Chinese are in no hurry to adjust the current value of the Yuan-Dollar relationship. Should any talks of a possible revaluation emerge later in the year, the downward pressure on the U.S. dollar would quicken as currency traders would buy the Japanese yen, and other freely traded Asian currencies, that would likely benefit from a revaluation. Mike Fitzpatrick writes for http://www.financial-watch.com
Prejudging Will Cost You Your Business
STOP Prejudging. 95% of people in direct sales and marketing fail, and here's the reason why. They "Prejudge" their Prospects and change their presentations t...
Breeding Clownfish
A short description about how to breed Nemo, how to breed Clownfish.
Check Your Colon Transient Time
You can check how long your food takes to go completely through your body. This time is called transient time. From your transient time, you can determine if y...
Four Job Interview Mistakes That Can Torpedo Your Chances of Success
What are the worst mistakes job hunters make? It turns out there are four big ones. Read on to find out what they are.
The Importance of Page Content
Gaining targeted web site traffic is difficult without knowing some of the best techniques I have leant over the last 3 years in building successful commercial ...
A Lesson In Advertising From The Eighteenth Century
Back in the 1760s, the great Dr Samuel Johnson delivered himself of the dictum that 'promise, large promise is the soul of advertising'. It's a good thought, a ...
A Gift of Energy
"When attack becomes dance, everything is seen as a gift of energy."
Hocus Pocus? Its Just Focus!
How many times have you wondered what magic formula the top Net earners were using? There really isn't any magic involved. No magic wand or success secret that ...
Are Your Dreams A Day Late And A Dollar Short?
One of the greatest challenges facing our ever intensive quest for the impossible dream is to make it across the finish line even if it's only by the skin of ou...
Delicoious Swordfish
A very tasty swordfish recipe. This dish is a low fat culinary dream.
Prevention and Treatment for Acne Scars
Most people cannot predict when they will have an acne outbreak or how severe that outbreak will be. If you suffer from acne outbreaks, having a good preventiv...
The Healing Power of Natures Herbs
Learn how to use 11 of Natures Herbs to heal Various Medical Conditions in a Holistic and Healthy Way...
Blemish Be Gone!
Contrary to what one might think, blemishes can occur at all different stages throughout ones life, not just during adolescence. These pesky pimples appear some...
Horse or Zebra? It Can Happen To Anyone
The comedian "Gallagher" said, "Everywhere you leak, the world hangs a bucket". If you a just starting out, even the smallest things can get you in the end.
Weight Loss: A Lapse Is Not a Relapse
One of the mistakes people make in weight loss is turning a lapse into a relapse. This article teaches you how to think clearly and recover quickly when lapses ...
Increase Your Online Traffic in 60 Minutes or Less
Powerful Tactics for Sending a Flood of Visitors to Your Website
Dealing With Negative People Made Easy
I was playing tennis today with one of my tennis buddies. We play once a week and we usually chat about work, professional tennis players and local news. Today...
Dieting? You Must Reset Your Weight-o-stat
Which diet is the best? None of them. Losing weight will never work until you reset the internal mechanism in your brain that controls what your weight is. I ca...
Reduce Waste This Christmas
The authors of Trash Talk offer these easy and fun ideas for
a more ecological holiday season.
Finding A Little Adventure
I have had more than my share of exciting times and I'm grateful for every one of them. There was the time the bear came into camp at 11:00 p.m. and we listened...
Piecing It All Together
The finished product should appear flawless, but the process of producing that story more often than not is full of stitches.
Why Use an Internet Sports Book to Make Wagers?
I have always held the believe that if you want the beat deal available then it would be foolhardy to purchase the first car that you see at the first dealershi...
Sales Tips from Sales Masters
Learn how to sell from dogs who are great teachers of how to sell easier and better.
Fixing A Credit Report
Is fixing a bad credit report possible? Yes, and you can do it on your own, starting today.
|
Print this page